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Excess Energy New Solution! Oil Companies to Dominate Bitcoin Mining Industry in Five Years

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Excess Energy New Solution! Oil Companies to Dominate Bitcoin Mining Industry in Five Years

The energy-intensive nature of the mining mechanism in the Bitcoin (BTC) system has been a point of criticism from the public. However, renowned podcaster Marty Bent has proposed a solution aimed at reducing the waste of oil and gas (O&G) while channeling this excess energy into Bitcoin mining, creating a symbiotic relationship between energy companies and Bitcoin.

Efficient Use of Oil By-Products

In a blog post on April 15th, Marty Bent revealed that since last year, he has been developing Bitcoin mining solutions for the U.S. mining company, Great American Mining (GAM), utilizing excess natural gas produced by oil companies to power Bitcoin mining rigs. In December last year, GAM deployed their first batch of small-scale mining operations in an oil field owned by a U.S. oil company in the form of oilfield containers. Marty Bent stated:

"At GAM, we believe that oil and gas (O&G) companies will become the largest miners in the Bitcoin network as they become more familiar with Bitcoin and realize the power of the solution mentioned above."

Mining Profits to Exceed Original by 5 Times

Previously, oil companies typically converted these natural gas by-products into natural gas liquids that could be transported by trucks and sold in the market for additional revenue. However, the machines used to convert gas to liquid are expensive and operationally restrictive, coupled with the declining market prices of natural gas liquids in recent years. Oil companies were in urgent need of a solution that could reduce energy waste and generate profits.

Bitcoin mining emerged as the best option. Marty Bent pointed out that properly designed containers filled with Bitcoin mining rigs could yield profits on average five times higher than transporting natural gas through pipelines for sale. This presents a huge opportunity for both the Bitcoin and O&G industries to establish an incredible symbiotic relationship that can endure indefinitely.

For oil companies, the value of by-products can be more efficiently utilized, leading to higher additional revenue. In addition to enhancing network security, Bitcoin mining also contributes to a more decentralized distribution of mining power. Marty Bent is optimistic about the current progress of the solution and expects significant achievements in the next five years.

This concept has been gaining popularity in recent years. The Winklevoss brothersinvested in a Texas-based company, Crusoe Energy Systems, last May, which converts surplus natural gas into mining energy for cryptocurrencies. Canadian oil company, Black Pearl Resources, also startedutilizing natural gas for Bitcoin mining last year to help offset operational costs.

The Mining Battle Between the U.S. and China

Currently, China is one of the preferred locations for large-scale cryptocurrency mining operations. With low electricity costs, the country's mining consumes about 60-70% of the global mining energy. Marty Bent believes that the distribution of Bitcoin miners needs to be further geographically diversified, and the United States is poised to capture a share of China's mining in the coming years as Bitcoin mining presents a significant economic opportunity for the U.S. oil and gas industry:

"We are still in the early stages of this competition compared to the Chinese region, but we are confident in achieving this vision in the next five years. Even if we may fail, we will still try."

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